New study shows significant increase in bonus expectations compared to 2024, with strong focus on saving and financial planning
UAE Bonus Outlook for 2025 Shows Positive Trend
A recent survey reveals that 75% of UAE residents are expecting to receive a bonus in 2025, marking a notable increase from 68% in the previous year. This upward trend reflects growing confidence in the UAE’s economic stability.
According to the YouGov survey commissioned by Zurich International Life, 68% of residents plan to save at least a portion of their bonus as part of their long-term financial strategy, indicating increased financial awareness across the emirate.
Generation Z Leading the Way in Financial Responsibility
The study highlights a remarkable shift in saving habits across different age groups:
- 31% of Gen Z (18-24 years) plan to save their entire bonus
- 63% of Millennials (25-34 years) intend to save all or most of their bonus
- 52% of those aged 45 and above aim to save most rather than all of their bonus
This intergenerational shift demonstrates a growing trend toward financial responsibility, with younger generations spearheading long-term financial planning while balancing immediate needs.
How UAE Residents Plan to Spend Their Bonuses
While saving remains a priority, the survey found that:
- 60% of respondents will allocate bonus funds for travel or holidays
- 27% plan to invest in skill-building and personal development
- The remainder will distribute their bonuses across various personal priorities
High-Growth Sectors Offering Substantial Bonuses
A separate survey by Cooper Fitch revealed that employees in high-growth sectors received some of the highest bonuses in 2024:
- Technology
- Banking
- Healthcare
- Consultancy
In these sectors, bonus payouts reached up to six months’ salary for specific roles. The trend shows bonuses increasingly tied to individual contributions rather than team-based rewards, emphasizing measurable outcomes.
Financial Confidence and Retirement Planning
The survey also found:
- 68% of UAE residents feel confident about their current financial situation
- 79% of those who sought professional financial advice reported higher confidence levels
- 75% of expats feel optimistic about having sufficient funds for retirement
- 61% believe Dh5 million or less is adequate for retirement
- 65% rely on workplace savings or gratuity for retirement planning
The study noted an increase in financial advisory consultations among residents, rising from 39% in 2024 to 55% in 2025.
“As financial awareness continues to grow across all generations, it’s clear that UAE residents are becoming more proactive in managing their money. Younger age groups, in particular, are leading the way, signalling a shift toward long-term planning and financial stability being ingrained in the culture,” said David Denton-Cardew, head of Propositions at Zurich International Life Middle East.
Key Takeaway
The rising trend of bonus expectations in the UAE, coupled with a strong inclination toward saving and financial planning, particularly among younger generations, indicates a maturing financial landscape in the region. This shift towards greater financial responsibility comes at a time when the UAE economy continues to demonstrate resilience and growth, providing residents with increased confidence in their financial futures.
JobXDubai 
Leave a comment